The Secret to Personal Finance
Is there really a secret to personal finance? Some say the key is not going into debt. Others would add that if you're already in debt, then lower your exenditures so that you can pay it off. Still others would add that investments are crucial to a sound personal finance plan.
Probably the best advice I've heard on successful personal finance is this: Live below your means and save.
Heard that already? But what does it really mean? I think it connects to a bigger concept: Who are you really? What is your purpose in life? When we make a shift in our thinking — and realize that who we are goes much deeper than how we choose to spend our money — we actually start needing less, spending less…and having more.
Ultimately, we are not the things we buy. You already knew this. But this time, really think about it.
April 15th, 2011 at 5:01 pm
Key to developing an effective financial plan is evaluating your current situation. While your plan isn’t a static document, you’ll save yourself time if you create a firm foundation that can be easily altered as circumstances change. Reevaluate your financial plan when necessary, and at least once a year.